This document establishes the specific legal rate of discount to be applied by local authorities in Great Britain when calculating the net present value of future financial obligations. The regulations are issued under the authority of the Local Government and Housing Act 1989, providing a standardized financial framework for municipal accounting. By defining these rates, the government ensures consistency in how local councils assess long-term capital expenditure and debt management across various administrative jurisdictions.

Legal professionals and municipal accountants utilize this text as a foundational regulatory reference for historical financial compliance. Experts note that while the document is highly technical and narrow in scope, it remains a necessary primary source for understanding the legislative history of British local government finance.